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Investor Presentation Setting the new standard for cannabis-based nutraceuticals and sports medicine therapies

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Page 1: Orion Nutra Investor Deckorionnutra.ca/.../2018/09/Orion-Nutraceuticals-Investor-Presentation.… · a l i g n e d w i t h p o w e r f u l t r e n d s _ 25,21 1875$&(87,&$/6 _ ,19(6725

Investor  PresentationSetting the new standard for cannabis-basednutraceuticals and sports medicine therapies

Page 2: Orion Nutra Investor Deckorionnutra.ca/.../2018/09/Orion-Nutraceuticals-Investor-Presentation.… · a l i g n e d w i t h p o w e r f u l t r e n d s _ 25,21 1875$&(87,&$/6 _ ,19(6725

ALIGNED WITH POWERFUL TRENDS

0 1 | O R I O N N U T R A C E U T I C A L S | I N V E S T O R P R E S E N T A T I O N

Orion is well-positioned to capitalize on powerful

emerging trends in both the international cannabis

and nutraceutical sectors and to become a world-

class brand differentiated by the quality, variety,

price point, and marketing of our products.

Orion is executing a comprehensive plan to

become a global leader in the production of

medical and recreational cannabinoid extracts

and oils, nutraceuticals, and pharmaceuticals.

US $22 Billion by 2022

Expected size of Canadian cannabis

market (recreational and medical)

US $70 Billion by 2022

US $52 Billion by 2022

80% of the total market

US $500 Billion

Projected size of the total cannabis

market within the United States

Anticipated global market size

of the nutraceuticals sector

Market share of cannabis extracts, oils,

and other derivatives produced after

extraction (versus 20% for dried bud)

Potential size of the of the eventual

international consumer market for

cannabis (medical & recreational)

Page 3: Orion Nutra Investor Deckorionnutra.ca/.../2018/09/Orion-Nutraceuticals-Investor-Presentation.… · a l i g n e d w i t h p o w e r f u l t r e n d s _ 25,21 1875$&(87,&$/6 _ ,19(6725

ORION EXECUTIVE SUMMARY

0 2 | O R I O N N U T R A C E U T I C A L S | I N V E S T O R P R E S E N T A T I O N  

MISSION

Diversified, high-margin revenue streams (products & oils)

Orion Nutraceuticals will set a new standard within Cannabis Life Sciences by producing and developing innovative products with key strategic partners in the industry. These partnerships contribute to our competitive advantages, which include low production costs, industrial-scale, high-quality, and global distribution. In order for the cannabis industry to reach its full potential it must reliably supply consumers with a variety of high-quality, tested, consistent, and safe products at an affordable price. All these are key strengths and capabilities of Orion.

WHY ORION?

HIGH-POTENTIAL PLATFORM

<5¢ cost/gram of dried flower (Colombia)Distribution channels in NA, EU, LATAM Pipeline of relationships & acquisition targets

Industry-proven senior management team

LESS OPERATIONAL RISK

Rigorous, transparent governance modelExecution, construction, operating expertiseLarge scale cultivation & extraction know-how

40+ potentially patentable formulations

MEANINGFUL INNOVATION

Portfolio of unique sports medicine productsAdvancements in new ingestion methodsDeveloping target, high-resin genetic strains

FUNDING REQUIREMENTS

PROJECTED USE OF PROCEEDS

Office & Admin 25%

Advertising & Marketing  10%

Building & Equipment 65%

ORION IS SEEKING EQUITY GROWTH CAPITAL:

ORION NUTRACEUTICALS IS PUBLICLY LISTED ON THE CANADIAN STOCK EXCHANGE (CSE: ORI)

AND IS IN THE PROCESS OF ACQUIRING HEALTH CANADA PRODUCTION, DISTRIBUTION, IMPORT/EXPORT LICENSES

Page 4: Orion Nutra Investor Deckorionnutra.ca/.../2018/09/Orion-Nutraceuticals-Investor-Presentation.… · a l i g n e d w i t h p o w e r f u l t r e n d s _ 25,21 1875$&(87,&$/6 _ ,19(6725

SEASONED MANAGEMENT TEAM

0 3 | O R I O N N U T R A C E U T I C A L S | I N V E S T O R P R E S E N T A T I O N

CCO, Director

Marcelin O'Neill

Independent Director

Robin Linden

CEO, Director

Jonathan Fiteni

CFO, Director

Christopher Cherry

The Orion senior management team possesses significant industry experience (including as a licensed producer), deep relationships, access to the most recent

cultivation and production technologies, and specialized cannabis and capital markets knowledge on par with the largest publicly listed companies in the sector.

Jonathan Fiteni is a cannabis pioneer who has worked over 15 years to actively bridge the divide between global investment capital and legal growers, suppliers, researchers, and medical professionals who have dedicated their lives to transforming the cannabis industry. Mr. Fiteni has guided several industry startups, raised millions in capital for both private and public companies and developed more than 40 patent pending cannabis formulations. Most recently Mr. Fiteni was the CEO and Director of Operations for MYM Nutraceuticals, Inc. a publicly listed (CSE) company focused on building large, licensed production facilities to serve the pharmaceutical-grade and recreational cannabis markets. Mr. Fiteni graduated from the British Columbia Institute of Technology with a Business Administration and Management degree.

Christopher Cherry has over 15 years of corporate accounting and audit experience, having been a Chartered Accountant (CA) since February 2009 and a Certified General Accountant (CGA) since 2004.   Mr. Cherry has held a number of senior- level positions, including as a Senior Accountant at KPMG and as an Auditor at Davidson and Co. LLP  in Vancouver.  Mr. Cherry has also served at the director and officer levels for a number of public mining companies.  Mr. Cherry is the founder of Cherry Consulting, Ltd. Mr. Cherry earned a Bachelors of Technology in Accounting from the British Columbia Institute of Technology.

Marcie O'Neill brings over 24 years of experience in the management of public companies, including expertise in the areas of corporate governance and affairs, regulatory and compliance, and financial/operational oversight. Ms. O'Neill is the Managing Director of Accrete Consulting, Inc., which delivers corporate governance and management services to public companies. Ms. O'Neill has served as a Director for a number of firms, including Alternate Health Corp., Jagercor Energy Corp., Cervantes Capital Corp., and Mandalay Resources Corporation. Ms. O'Neill is a graduate of the British Columbia Institute of Technology with a degree in Business Management.  Ms. O'Neill has also successfully completed the Canadian Securities Course and the Conduct and Practices Handbook, both with Honours.

Robin Linden contributes over 20 years of leadership and management experience, including roles at the University of Manitoba, Molson Breweries Canada, Canadian luxury retailer – Holt Renfrew, and Fairmont Hotels and Resorts. Mr. Linden currently sits on the board of directors for MYM Nutraceuticals, a publicly traded Canadian medical cannabis company. He has been instrumental in initiating various projects, including the current construction of over 2.7 million square feet of cannabis production space in Canada and Australia. Mr. Linden brings with him experience in the branding and sales of a variety of cannabis-based products. Mr. Linden holds a Bachelor of Arts degree (with honours) from the University of Manitoba and obtained post graduate diplomas from both Simon Fraser University (Vancouver) and the University of St. Andrews (Scotland).

Page 5: Orion Nutra Investor Deckorionnutra.ca/.../2018/09/Orion-Nutraceuticals-Investor-Presentation.… · a l i g n e d w i t h p o w e r f u l t r e n d s _ 25,21 1875$&(87,&$/6 _ ,19(6725

ORION PRODUCTS & SOLUTIONS

Orion will use cannabis extracts and oils as the foundation to develop an innovative line of branded

nutraceutical and pharmaceutical products, as well as sell bulk oils to meet global industry demand.

0 4 | O R I O N N U T R A C E U T I C A L S | I N V E S T O R P R E S E N T A T I O N

SPORTS MEDICINE

Orion First Mover Advantages

Medicinal ProductsTransdermal Patches

Topical Gels

Creams

Sprays

Capsules

Tinctures

Aerosols

Sublingual Medication

Buccal Medication

Pharmaceutical-Grade Products

Over-the-Counter ProductsPersonal Care Products

Massage Oils

CBD Sports Drinks

Time-Released CBD Sports Wraps

Sports Medicine Products

Bulk Extracts & OilsFull Spectrum Oils

CBD Isolates

Other Targeted Cannabinoids

Terpenes

Micro-Emulsions

As the CBD market continues to evolve and expand through

increased awareness and advances in research,

nutraceutical science is becoming heavily involved.  Orion

is helping open the door to a new range of CBD-based and

CBD-infused products which offer potentially better

solutions for pain management, reduced inflammation,

faster recovery times, and the offsetting of brain injuries.

Orion has an aggressive strategy, in partnership with

leading research organizations, professional athletes, and

sports leagues, to introduce and promote an innovative line

of sports medicine therapies and related wellness products.

Retailers, Distributors, Wholesalers

Homeopathic Sales Channels

Pharmaceutical Sales Channels

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ORION TRANSDERMAL PATCHES

Transdermal cannabis patches are a unique method of cannabis consumption. A patch with a special adhesive is applied to a veinous area of the body, and the cannabinoids (cannabis chemical compounds) enter the bloodstream for an effective and long-lasting response. They can be used for pain and sleep management amongst other medical benefits. Transdermal applications are an alternative option for users who do not want or cannot, consume cannabis by inhaling or ingesting the medication.

0 5 | O R I O N N U T R A C E U T I C A L S | I N V E S T O R   P R E S E N T A T I O N

Orion will work to develop transdermal patches, with formulations including CBD, THC, THC-A, CBG, CBN, and / or other desired blends of cannabinoids.  Orion's transdermal patches and topical gels are advisable solutions for the following conditions:

Fibromyalgia Peripheral Neuropathic PainParkinson's DiseaseSchizophreniaAutismPost-Traumatic Stress Disorder (PTSD)Epilepsy (99% CBD formulation)Multiple SclerosisDravet Syndrome

ADVANTAGESMore uniform plasma levels as delivery are controlled

through the skin and into circulation

Simple removal of the patch can reverse any potential

adverse side effects, allowing for a more controlled and

comfortable experience

No "peaks" and valleys" as seen with oral administration

(inhaling or ingesting cannabis)

A non-invasive method of cannabis consumption

Avoids first-pass effects with increased bioavailability

Improved patient compliance due to the reduced

dosing frequency

Reduced side effects due to the reduction of peaks in

plasma levels

Page 7: Orion Nutra Investor Deckorionnutra.ca/.../2018/09/Orion-Nutraceuticals-Investor-Presentation.… · a l i g n e d w i t h p o w e r f u l t r e n d s _ 25,21 1875$&(87,&$/6 _ ,19(6725

LARGE-SCALE PRODUCTION CAPACITY

0 6 | O R I O N N U T R A C E U T I C A L S | I N V E S T O R P R E S E N T A T I O N

MEDIC OASIS

(ACquisition)

 ORION

NUTRACEUTICALS

fcm global

(joint venture)

Canada-based (Dorval, Quebec)

20,000 ft2 vertical farming

1,300 Kg/year of Cannabis Oil

6,500 Kg/year of Dry Flower

Canada-based (Vancouver)

255,800 ft2 indoor growing

46,300 Kg/year of Cannabis Oil

381,500 Kg/year of Dry Flower

Colombia (Medellin, La Ceja)

235,800 ft2 production facility

300+ Ha of additional land (Tolima)

45,000+ Kg/year of Cannabis Oil

CLEAR VALUE PROPOSITION

Orion's nimble structure and partnerships / acquisitions offer

substantial benefits to all stakeholders and give the company

a significant competitive advantage.

FURTHER GROWTH OPPORTUNITIES

Orion has developed both global reach and local engagement over the last several years, with future expansion potential under review

in Greece & Macedonia.

Orion products will be produced, tested, and distributed to harmonized

GAP and GMP standards of quality

Page 8: Orion Nutra Investor Deckorionnutra.ca/.../2018/09/Orion-Nutraceuticals-Investor-Presentation.… · a l i g n e d w i t h p o w e r f u l t r e n d s _ 25,21 1875$&(87,&$/6 _ ,19(6725

COLOMBIA'S COMPARATIVE EDGE

0 7 | O R I O N N U T R A C E U T I C A L S | I N V E S T O R P R E S E N T A T I O N

Colombia features established agribusiness (#2 globally for exports of coffee and cut flowers) and pharmaceutical sectors, as well as 45+ international free trade agreements, including economic treaties with Argentina, Brazil, Canada, Chile, Mexico, Peru, and Uruguay - all countries with existing or emerging medical/recreational cannabis laws.

E Q U A T O R

E Q U A T O R

Equatorial climate with 12/12/365 daily light cycle

M E D E L L Í N

CO LOMB I A

B O G O T Á

POSSIBLY THE BEST PLACE ON EARTH TO SUSTAINABLY GROW CANNABIS AT SCALE

A COUNTRY OF MANY SURPRISES AND AN UNMATCHED TRANSFORMATIONAL STORY

Top world ranks for water availability & precipitation

Elevations ranging from 0 to 13,125 ft above sea level

#1 in world: flora species/square mile, #2 in biodiversity

21 million Ha of land suitable for agricultural expansion

Hundreds of strains in their natural environment

LATAM's most advanced cannabis regulatory framework

Patient-friendly laws; high approval for medical cannabis

Population of 49 million people (55% under the age of 30)

10 major cities with more than 500,000 inhabitants

2x landmass of California, 3x landmass of Germany

Dynamic research community and cannabis talent pool

Gateway between The Americas; access to two oceans

L A C E J A

N A T A G A I M A , T O L I M A

Page 9: Orion Nutra Investor Deckorionnutra.ca/.../2018/09/Orion-Nutraceuticals-Investor-Presentation.… · a l i g n e d w i t h p o w e r f u l t r e n d s _ 25,21 1875$&(87,&$/6 _ ,19(6725

A WINNING FORMULA

0 8   | O R I O N N U T R A C E U T I C A L S | I N V E S T O R P R E S E N T A T I O N

FCM Global's Co-Source Colombia model complements Orion's downstream product development focus,

enabling outsourced lower-cost cultivation and extraction without compromising customization, consistency, or

quality. FCM also has local alliances available to manufacture and distribute a range of Orion products in

Colombia and across LATAM.  FCM's platform is designed to flexibly integrate to Orion's business requirements.

FINISHED ORION PRODUCTS

LOW-COST OIL FOR ORION

OILS IN BULK FOR SALE

UNIQUE STRAINS

CULTIVATION AT SCALE

EFFICIENT EXTRACTION

TRUSTED BRAND ABLE TO FILLLARGE PURCHASE ORDERS 

TRUSTED SUPPLY PARTNERABLE TO KEEP PACE WITH ORION

DEVELOPMENT OF NEW

VALUE-ADDED PRODUCTS

New Standards in Nutraceuticals

Co-Source with Confidence

FCM's CAPABILITIES + COLOMBIAN COMPARATIVE ADVANTAGES WILL HELP SUPPORTORION'S STRATEGIES FOR DIFFERENTIATED POSITIONING AND LONG-TERM PROFITABILITY

Product Quality

Competitive Pricing

Availability & Variety

Professional Team

Proven Pilot Operation

EXPANDED DISTRIBUTION

CHANNELS

Fully Licensed Producer

Page 10: Orion Nutra Investor Deckorionnutra.ca/.../2018/09/Orion-Nutraceuticals-Investor-Presentation.… · a l i g n e d w i t h p o w e r f u l t r e n d s _ 25,21 1875$&(87,&$/6 _ ,19(6725

FCM GLOBAL EXECUTIVE SUMMARY

0 9   | O R I O N N U T R A C E U T I C A L S | I N V E S T O R P R E S E N T A T I O N

FCM Global is building a solid production-focused company.  As Colombia's first fully licensed producer (August 2017)   and exporter (September 2017) for non-psychoactive cannabis for medical and research purposes, FCM is also in the final stages of receiving its high-THC licenses (anticipated mid-Q4 2018 approval).  FCM is well-positioned to produce and supply a wide range of CBD and THC extracts, isolates, seeds, and strains to support Orion and to distribute internationally

Proprietary advanced genetics & cloning programs

(indoor, outdoor strains)

Fully non-psychoactive licensed (grow, produce, export)

Purpose-built platform for Colombian medical cannabis

Soil-to-Oil: genetics, grow, extract, package, distribute

Site design optimized for production capacity & efficiency

High-efficiency extraction with total oil production cost < 45¢ per gram

Enclosed naturally sunlit greenhouses and sustainable methods

In-house quality testing lab plus independent CoAs

Existing 235,800 ft2 production facility (La Ceja)

Designed & operated to GAP and GMP standards

Integrated ERP system with seed-to-sale traceability

Replicable blueprint to drive future expansion (Tolima)

12 Month Execution

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TOLIMA: TRANSFORMATIVE SCALE

1 0 | O R I O N N U T R A C E U T I C A L S | I N V E S T O R P R E S E N T A T I O N

FCM has fully secured a 450+ hectare property in Natagaima, Tolima Colombia

Over 300 hectares suitable for controlled outdoor cultivation (CBD, THC strains)

Additional 150+ hectares suitable for centralized production / export infrastructure

Further onsite capacity to develop, manufacture, distribute finished products

Potential to achieve US $1 billion in revenues by YE 2023 (3-4 stage development)

Enables production costs of < 4¢ per gram for dried flower and < 15¢ per gram of oil

Strategic location: non-conflict agricultural area with favorable free zone potential

Indoor propagation, controlled outdoor cultivation (leveraging La Ceja pilot program)

FCM production licenses are extendable to new properties and partnerships

Initial suitability tests have been successful; enthusiastic local government support

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MEDIC OASIS, INC.

1 1 | O R I O N N U T R A C E U T I C A L S | I N V E S T O R P R E S E N T A T I O N

Medic Oasis, Inc. is a Quebec-based company currently in Stage 5 of its Health Canada application process. 

Quebec is Orion's Canadian production headquarters and the next step in building a global footprint.  Medic

Oasis, when licensed, is strategic to Orion as a 99% owned subsidiary for both expanding its presence in the

Canadian cannabis sector, as well as to enable import/export of oil from Colombia (via FCM) to other parts of

Canada, Europe, and wider international markets. 

Medic Oasis will be an instrumental part of Orion's development efforts for certain strains, potent extracts,

nutraceuticals, and pharmaceuticals which incorporate cannabis and cannabis-based medical science.

MEDIC OASIS HIGHLIGHTS

Canadian-based grower / supplier of cannabis and cannabis-based products

Currently in the advanced stages of becoming an ACMPR Licensed Producer 

Planned 20,000+ ft2 production facility in Dorval, Quebec (Q2 2019 completion)

Medic Oasis will be Orion's first growing facility (vertical growing techniques)

Additional in-house lab support services and R&D capabilities

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FINANCIAL HIGHLIGHTS

1 2 | O R I O N N U T R A C E U T I C A L S |   I N V E S T O R P R E S E N T A T I O N

O R I O N F I N A N C I A L P R O J E C T I O N S

O R I O N C A P T A B L E S U M M A R Y

Page 14: Orion Nutra Investor Deckorionnutra.ca/.../2018/09/Orion-Nutraceuticals-Investor-Presentation.… · a l i g n e d w i t h p o w e r f u l t r e n d s _ 25,21 1875$&(87,&$/6 _ ,19(6725

Thank YouC O N T A C T O R I O N :

300 – 1055 West Hastings St. Vancouver, BC, V6E 2E9 Tel: (604) 609-6196 

www.orionnutraceuticals.com & .ca

[email protected] 

Jonathan Fiteni, CEO